Top 5 Zacks #1 Ranked Healthcare Mutual Funds - Best of Funds
December 11 2012 - 12:19PM
Zacks
When markets are passing through choppy waters, investors often
rely on the healthcare sector to safeguard their investments. This
is because the demand for healthcare services does not vary with
market conditions, making them a safe haven during difficult times.
Many pharma companies also generate regular dividends, which go a
long way in softening the blow dealt by plummeting share prices.
Mutual funds are the perfect choice for investors looking to enter
this sector since they possess the advantages of wide
diversification and analytical insight.
Below we will share with you 5 top rated health mutual funds.
Each has earned a Zacks #1 Rank (Strong Buy) as we expect these
mutual funds to outperform their peers in the future. To view the
Zacks Rank and past performance of all health funds, investors can
click here to see the complete list of funds.
Putnam Global Health Care A (PHSTX) invests predominantly
in common stocks of large and mid size companies from the health
care sector across the world. The fund may purchase both growth and
value stocks. The healthcare mutual fund has a three year
annualized return of 9.54%.
Kelsey Chen is the fund manager and has managed this healthcare
mutual fund since 2005.
Prudential Jennison Health Sciences A (PHLAX) seeks
capital growth over the long term. It invests heavily in equity and
related securities and its portfolio may include pharmaceutical
companies, biotech firms, service providers and medical device
manufacturers. The healthcare mutual fund has a three year
annualized return of 24.20%.
As of October 2012, this healthcare mutual fund held 86 issues,
with 6.04% of its total assets invested in Alexion Pharmaceuticals,
Inc.
Schwab Health Care (SWHFX) invests a large proportion of
its assets in the healthcare sector. It mainly invests in equity
securities but may also invest in derivatives. The fund focuses on
investing in domestic firms, but may invest up to 25% of its assets
in other countries. The healthcare mutual fund has a three year
annualized return of 16.49%.
The healthcare mutual fund has an expense ratio of 0.81%
compared to a category average of 1.52%.
Eaton Vance Worldwide Health Sciences A (ETHSX) seeks
long-term capital appreciation. The fund focuses on investing in
medical research and the healthcare sector. It invests the majority
of its assets in companies which are primarily engaged in
scientific development in the healthcare sector. A maximum of 5% of
its assets may be utilized to purchase royalty bonds. The
healthcare mutual fund has a three year annualized return of
13.32%.
Samuel D. Isaly is the fund manager and has managed this
healthcare mutual fund since 1985.
Biotechnology UltraSector ProFund Service (BIPSX) invests
in equity securities and derivatives which together should provide
daily returns which are 150% of the daily return of the Dow Jones
U.S. Biotechnology Index. The fund may also invest in short term
cash instruments of high quality. The healthcare mutual fund has a
three year annualized return of 24.87%.
The healthcare mutual fund has an expense ratio of 2.73%
compared to a category average of 1.52%.
To view the Zacks Rank and past performance of all health mutual
funds, investors can click here to see the complete list of
funds.
About Zacks Mutual Fund Rank
By applying the Zacks Rank to mutual funds, investors can find
funds that not only outpaced the market in the past but are also
expected to outperform going forward. Learn more about the Zacks
Mutual Fund Rank at http://www.zacks.com/funds.
View All Zacks #1 Ranked Mutual Funds
(BIPSX): ETF Research Reports
(ETHSX): ETF Research Reports
(PHLAX): ETF Research Reports
(PHSTX): ETF Research Reports
(SWHFX): ETF Research Reports
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